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Icici Bank Limited (IBN)
NYSE:IBN
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Icici Bank
(NYSE:IBN)
Rating:71Outperform
Price Target:
$37.00
â–²(12.56% Upside)
Positive Factors
Asset Quality
Asset quality improved as the gross NPA ratio improved to 1.67% from the previous 1.96%.
Earnings
Record quarterly profit with net profit ahead of expectations reflects strong financial performance.
Growth Strategy
Strong loan growth and ongoing digitisation continue to fuel the growth runway, with technology initiatives helping to sustain this momentum.
Negative Factors
Asset Quality Risk
Key risks include potential deterioration in asset quality and weaker earnings due to slower loan growth and net interest margins.
Monetary Policy Impact
Management expects some impact on margins as the Reserve Bank of India moves towards a rate-cutting cycle.
Icici Bank (IBN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.90B
Dividend Yield0.73%
Average Volume (3M)4.40M
Price to Earnings (P/E)18.7
Beta (1Y)0.41
Revenue Growth17.32%
EPS Growth12.99%
CountryUS
Employees187,765
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.41
Shares Outstanding3,569,548,800
10 Day Avg. Volume4,164,801
30 Day Avg. Volume4,403,196
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue0.04
Enterprise Value/Gross Profit0.06
Enterprise Value/Ebitda0.13
Forecast
1Y Price Target
$37.25Price Target Upside13.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Icici Bank Business Overview & Revenue Model
Company DescriptionICICI Bank (IBN) is one of India's largest private sector banks, providing a wide array of financial services to individuals and businesses. Established in 1994, the bank operates in various sectors including retail banking, corporate banking, investment banking, and insurance. Its core products and services encompass savings and current accounts, loans (personal, home, and business), credit and debit cards, investment solutions, and wealth management services, catering to a diverse clientele across India and internationally.
How the Company Makes MoneyICICI Bank generates revenue primarily through interest income, which is earned from loans and advances given to customers. The bank charges interest on various loan products, including personal loans, home loans, and business loans, which typically have higher interest rates than the interest paid on deposits. Additionally, ICICI Bank earns fee-based income from services such as transaction fees, account maintenance fees, and commissions from financial products like mutual funds and insurance. The bank also benefits from investment income through its holdings in securities and government bonds. Significant partnerships with fintech companies and other financial institutions enhance its service offerings and customer reach, contributing to overall revenue growth. The bank's diversified portfolio and robust digital banking platform further support its earnings by attracting a large customer base and providing cross-sell opportunities.
Icici Bank Earnings Call Summary
Earnings Call Date:Jul 19, 2025
(Q1-2026)
| % Change Since: ―|
Next Earnings Date:Oct 20, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant profit growth, improved asset quality, and a robust capital position. However, challenges were noted in the rural segment and some underperformance in specific loan portfolios, such as auto loans and credit cards. Overall, the positive aspects significantly outweigh the negative, indicating a favorable outlook.Q1-2026 Updates
Positive Updates
Strong Profit Growth
Profit before tax excluding treasury grew by 11.4% year-on-year to INR 156.90 billion, core operating profit increased by 13.6% year-on-year to INR 175.05 billion, and profit after tax grew by 15.5% year-on-year to INR 127.68 billion.
Deposit and Loan Growth
Total deposits grew by 12.8% year-on-year, and the domestic loan portfolio grew by 12% year-on-year. Business banking portfolio saw a notable growth of 29.7% year-on-year.
Improved Asset Quality
Net NPA ratio improved to 0.41% from 0.43% in the previous year, and the provisioning coverage ratio on nonperforming loans was maintained at 75.3%.
Strong Capital Position
CET1 ratio stood at 16.31% and total capital adequacy ratio at 16.97%, indicating a robust capital position.
Negative Updates
Rural Portfolio Decline
The rural portfolio declined by 0.4% year-on-year and 1.5% sequentially, indicating challenges in the rural segment.
Auto Loans and Credit Card Portfolios Underperform
Auto loans grew by only 2.2% year-on-year and declined by 0.7% sequentially, while the credit card portfolio grew by 1.5% year-on-year and declined by 5.4% sequentially.
Gross NPA Additions
Gross NPA additions increased to INR 62.45 billion in the current quarter compared to INR 59.16 billion in Q1 of last year.
Company Guidance
During the Q1 FY '26 earnings call, ICICI Bank reported a year-on-year growth of 11.4% in profit before tax, excluding treasury, reaching INR 156.90 billion. The core operating profit increased by 13.6% year-on-year to INR 175.05 billion, while profit after tax rose by 15.5% to INR 127.68 billion. Total deposits grew by 12.8% year-on-year, with average deposits increasing by 11.2% year-on-year and 3.1% sequentially. The domestic loan portfolio grew by 12% year-on-year, with the retail loan portfolio showing a 6.9% increase. The bank maintained a strong capital position with a CET1 ratio of 16.31% and a total capital adequacy ratio of 16.97%. The net NPA ratio improved slightly to 0.41% from 0.43% a year ago. The bank's net interest income rose by 10.6% year-on-year to INR 216.35 billion, with a net interest margin of 4.34%. Non-interest income, excluding treasury, grew by 13.7% year-on-year to INR 72.64 billion. Despite challenges, the bank aims to drive risk-calibrated profitable growth by focusing on maintaining a strong balance sheet and delivering sustainable returns.Icici Bank Financial Statement Overview
Summary
Icici Bank exhibits strong profitability and revenue growth with a commendable gross profit margin and net profit margin. However, negative operating cash flow and free cash flow highlight liquidity challenges, requiring attention to cash flow management for sustained growth.Income Statement
Icici Bank's income statement reveals strong profitability with a gross profit margin of 68.11% and a net profit margin of 17.32% for the most recent year. The bank has demonstrated impressive revenue growth of 106.33% over the past year, indicating a robust expansion. EBIT and EBITDA margins are healthy at 24.78% and 55.92% respectively. However, the significant increase in total revenue from the previous year might not be sustainable in the long term.82
Very Positive
Balance Sheet
The balance sheet of Icici Bank shows a solid equity position with a debt-to-equity ratio of 0.63, reflecting manageable leverage levels. The return on equity stands at 14.77%, indicating efficient use of shareholder funds. The equity ratio is 13.07%, suggesting a stable balance between liabilities and equity. While the bank maintains a healthy leverage position, the relatively low equity ratio in comparison to total assets may pose some risk in economic downturns.75
Positive
Cash Flow
Icici Bank's cash flow statement highlights a challenging year with a negative operating cash flow, indicating cash outflows exceeding inflows from core operations. The free cash flow has decreased significantly, resulting in a negative free cash flow growth rate. The operating cash flow to net income ratio is negative, raising concerns about cash generation efficiency. Despite these challenges, the bank has managed to maintain financing activities to support operations.60
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.95T | 1.43T | 1.85T | 1.58T | 1.61T |
| Gross Profit | 2.01T | 1.43T | 1.29T | 989.30B | 964.98B |
| EBITDA | 1.65T | 635.04B | 488.90B | 280.08B | 218.35B |
| Net Income | 510.29B | 442.56B | 340.37B | 251.10B | 183.84B |
Balance Sheet | |||||
| Total Assets | 26.42T | 23.64T | 19.58T | 17.53T | 15.74T |
| Cash, Cash Equivalents and Short-Term Investments | 2.14T | 1.90T | 1.64T | 2.14T | 1.82T |
| Total Debt | 2.19T | 2.01T | 1.84T | 1.59T | 1.40T |
| Total Liabilities | 22.88T | 20.94T | 17.37T | 15.65T | 14.07T |
| Stockholders Equity | 3.45T | 2.56T | 2.14T | 1.82T | 1.58T |
Cash Flow | |||||
| Free Cash Flow | -800.22B | 1.54T | -62.39B | 562.51B | 1.36T |
| Operating Cash Flow | -752.52B | 1.57T | -37.71B | 581.11B | 1.38T |
| Investing Cash Flow | -772.88B | -1.46T | -680.05B | -393.21B | -629.87B |
| Financing Cash Flow | 2.04T | 2.47T | 247.91B | 174.51B | -546.67B |
Icici Bank Technical Analysis
Neutral
32.87
Price Trends
33.49
Negative
33.02
Negative
31.27
Positive
Market Momentum
-0.15
Positive
40.43
Neutral
11.23
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBN, the sentiment is Neutral. The current price of 32.87 is below the 20-day moving average (MA) of 33.51, below the 50-day MA of 33.49, and above the 200-day MA of 31.27, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 40.43 is Neutral, neither overbought nor oversold. The STOCH value of 11.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IBN.
Icici Bank Risk Analysis
Icici Bank disclosed 63 risk factors in its most recent earnings report. Icici Bank reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icici Bank Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $172.99B | 22.95 | 13.78% | 0.88% | 2.48% | 0.36% | |
76 Outperform | $69.36B | 9.72 | 20.49% | 6.36% | 5.44% | 2.81% | |
72 Outperform | $64.84B | 12.69 | 10.06% | 3.85% | 3.47% | -8.90% | |
71 Outperform | $116.90B | 18.71 | 17.47% | 0.73% | 17.32% | 12.99% | |
70 Outperform | $18.53B | 18.08 | 9.43% | 6.16% | -3.77% | -10.59% | |
66 Neutral | $28.96B | 8.49 | 11.76% | 2.03% | -4.58% | 39.03% | |
62 Neutral | AU$10.28B | 9.96 | 13.11% | 4.73% | 33.44% | 22.25% |
* Financial Sector Average
Performance Comparison
IBN
Icici Bank
32.87
5.11
18.41%
BBD
Banco Bradesco SA
2.90
0.39
15.54%
BSBR
Banco Santander Brasil
4.96
-0.11
-2.17%
HDB
Hdfc Bank
74.72
14.25
23.57%
ITUB
Itau Unibanco
6.86
1.55
29.19%
LYG
Lloyds Banking
4.40
1.67
61.17%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.